The second most successful franchise in the Indian Premier League (IPL), Chennai Super Kings (CSK) has become the first sports enterprise in the country to achieve unicorn status.
What is Unicorn in startups :-
"Unicorn" is a term used in the venture capital industry to describe a privately held startup company with a value of over $1 billion. The term was first coined by Aileen Lee, founder of Cowboy ventures when she referred to the 39 startups that had a valuation of over $1 billion as unicorns. The term initially was used to lay emphasis on the rarity of such startups. The definition of a unicorn startup has remained unchanged since then.
Unicorn is a term given only to ‘startups’ who have a valuation of over a billion. The startups that exceed the valuation of $10 billion are grouped under the term called decacorn (a super unicorn). Dropbox, SpaceX and WeWork are some of the examples of decacorn.
The word ‘unicorn’ has come a long way from just being a mythological creature to a regular feature in business and finance discussions. Today, unicorn companies have attained recognition and made a place for themselves in the market. That said, it is not necessary that every unicorn will end up being a successful startup. The point is, any startup mustn’t stop hustling after touching a milestone.
Chennai Super Kings becomes India’s First Unicorn Sports Enterprise:
Chennai Super Kings (CSK), has become the country’s first sports Unicorn with its market cap having touched a high of Rs 7,600 crores and its share in the grey market trading in the Rs 210-225 price band. The Mahendra Singh Dhoni-led CSK, which won its fourth IPL title in Dubai last year, now has a market cap more than its parent entity, India Cements.
The franchise’s market cap went past its parent entity, India Cements. On Friday, India Cements’ market cap was at INR 6,869 crores. As per reports, there were two factors that led to the rise in market cap.
Srinivasan, managing director of India Cements, said that “Brand CSK will outgrow Brand India Cements. If you look at the history of franchise-based leagues in the US, it will outgrow everything. Passion for cricket is so much in India. The road between countries will see franchise-based leagues getting precedence as we go along”.
The shares of Chennai Super Kings Cricket Limited had also received a huge boost last year, going from INR 110-120 per share to INR 220 per share within a week.
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